Fears Xstrata suspension to hit far north traders

Far north Queensland's peak economic lobby group says the region's economy will suffer from suspension of mining projects in the state.

Mining giant Xstrata has suspended about $400 million of spending on expanding the Ernest Henry project in the state's north-west.

Cairns Chamber of Commerce president Jeremy Blockey says far north Queensland businesses supply goods and services to the mine.

"They would purchase all sorts of goods and services from places like Cairns from office supplies to ... grinding medium and other metal fabricating goods that will impact upon people with those skills," he said.

"The worst case scenario for us is that those skills are lost from the region because they go and seek employment elsewhere."